Country Report Bangladesh April 2011

Outlook for 2011-15: International relations

Bangladesh's foreign policy will remain focused on improving economic and diplomatic ties with India and China. Relations with India have improved dramatically since the AL government came to power. New agreements to combat terrorism, tackle crossborder crime and strengthen economic ties were signed in January 2010 and have raised hopes that a bilateral free-trade agreement will be reached. India's prime minister, Manmohan Singh, plans to make his first official visit to Bangladesh later this year. However, the government will be careful not to allow improved relations with India to damage ties with China, which in recent years has become one of Bangladesh's largest trading partners and remains its primary supplier of military equipment. The government is expected to exploit Bangladesh's strategically important location on the Bay of Bengal to extract concessions on trade and aid from both India and China during the forecast period.

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